Microsoft: Which Nations are Leading the Way in AI Adoption?

AI experienced immense growth in 2025. Agentic AI was catapulted into the mainstream, while large language models such as ChatGPT and Claude continued to attract new users.

In its AI Diffusion Report 2025, Microsoft analyses the top 30 countries using AI – each of which saw usage increase by at least 1.1% in the second half of 2025 compared to H1.

Among the most notable of the findings is the position of the US, which places 24th in H2, despite having the world's largest ChatGPT subscriber market.

Microsoft's AI Diffusion Report 2025

Microsoft's AI Diffusion Report 2025 ranks countries by 'AI User Share', meaning the percentage of an entire population using any generative AI product.

The findings have been split in two halves – the first six months of 2025 and the final six months – and compared to demonstrate the rate of AI adoption globally.

The top three countries maintained their positions throughout the year. The United Arab Emirates (UAE) places first overall as the country with the highest percentage of its working age population using AI tools. This rose to 64% by the latter half of 2025, a 4.6% increase from the first half of the year.

Placing second, Singapore had 60.9% of its population using AI by the end of 2025. Third-placed Norway had 46.4% of its population using AI in the latter half of the year. 

South Korea experienced significant growth in AI usage throughout the year – the most of all countries on the rankings. It moved seven places up the rankings, from 25th place to 18th place by the end of the year, with 30.7% of its population using AI. 

Spotlight on the US

While the US' working age population increased its AI usage by 2% in the second half of the year, it fell back from 23rd to 24th position as other countries climbed the ladder.

It comes despite the US leading in AI infrastructure and the construction of data centres. 

Silicon Valley, for example, is home to 120 data centres, while its AI Hub – launched in September 2025 – is where developers, startups and business leaders come together to build what's next in AI.

Microsoft's analysis considers why the proportional usage of AI by the US' population (340 million) is smaller than that of other nations.

While its usage increased by 2% between H1 and H2, the report demonstrates that smaller populations tend to be more highly digitised.

The UAE serves as a prime example. Despite having a much smaller population of approximately 11 million, almost two thirds of working age people are using AI.

Following the release of Microsoft's report, Brad Smith, Vice Chair and President of Microsoft, published a five-point-plan to increase AI usage in the US.

It aims to connect with local communities across the US for a "Community-First AI Infrastructure" – a commitment to run data centres responsibly and in a way that benefits local communities. 

The plan includes:

• Ensuring data centres don't increase electricity prices
• Minimising water use and replenishing more water than they use
• Creating jobs for residents
• Adding to the tax base that funds local hospitals, schools, parks and libraries
• Strengthening communities by investing in local AI training and non-profits. 

Satya Nadella, CEO of Microsoft, adds: "As we continue to expand our AI infrastructure, we’re committed to being a good neighbour in the communities where we build and operate our data centres."

South Korea's remarkable rise

During the second half of 2025, South Korea established itself as a global leader in AI adoption.

The nation jumped seven places in global rankings in H2, moving from 25th to 18th.

With generative AI now used by more than 30% of the population, South Korea’s 80% growth rate since late 2024 has significantly outpaced both the global average and the US.

This rapid expansion – which has made the country the world’s second-largest ChatGPT subscriber market – is driven by robust national integration policies, and the refinement of Korean-language frontier models, as well as the deployment of highly-resonant consumer features.

With roughly one in six people worldwide now using generative AI tools, Microsoft's AI Diffusion Report 2025 reveals remarkable progress for a technology that only recently entered mainstream use.